Issue K4, "Income Statement Classification of Hedge
Ineffectiveness and the Component of a Derivative's Gain or Loss
Excluded from the Assessment of Hedge Effectiveness"

The tentative guidance for the above 17 Issues was
developed based on the results of discussion by the Derivative
Implementation Group (DIG) and had been posted on the FASB web site
for comment for at least three months.

The Board deferred clearance on three issues,
Statement 133 Implementation Issues No. H8, "Measuring the Amount
of Ineffectiveness in a Net Investment Hedge," No. H9, "Hedging a
Net Investment with a Compound Derivative That Incorporates
Exposure to Multiple Risks," and No. J11, "Transition Adjustment
for Net Investment Hedges," for further review by the staff. Those
issues will be brought back to the Board for its consideration
before the end of this year.